Hiscox Ltd reports Record Profits and Growth in Full-Year Results 2023

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Hiscox Ltd (LON:HSX) has announced its full-year results for the year ended 31 December 2023

	2023	2022 As restated under IFRS 17
Insurance contract written premium^[1]	$4,598.2m	$4,355.4m
Net insurance contract written premium¹	$3,555.8m	$3,225.5m
Insurance service result	$492.3m	$360.9m
Net investment result	$384.4m	$(187.3)m
Profit before tax	$625.9m	$275.6m
Earnings per share	206.1¢	73.8¢
Earnings per share adjusted for Bermuda DTA	162.7¢	73.8¢
Total dividend per share	37.5¢	36.0¢
Net asset value per share¹	951.1¢	764.5¢
Group combined ratio (discounted)¹	85.5%	88.7%
Group combined ratio (undiscounted)¹	89.8%	91.1%
Return on equity¹	27.6%	10.1%
Return on equity adjusted for Bermuda DTA	21.8%	10.1%
Positive prior year development¹	$122.8m	$209.4m
Bermuda solvency capital ratio (BSCR)^[2]	212%	199%

Highlights

· Net insurance contract written premium (net ICWP) grew by 10.7% in constant currency to $3,555.8 million (2022: $3,225.5 million).

· Record profit before tax of $625.9 million (2022: $275.6 million), underpinned by:

o a 36.4% increase in the insurance service result at $492.3 million (2022: $360.9 million); and

o a record net investment income of $384.4 million (2022: loss of $187.3 million).

· Undiscounted combined ratio of 89.8% (2022: 91.1%).

· Group ROE of 21.8%³.

· $150 million buyback, with pro-forma BSCR post ordinary final dividend and capital return of 200%².

· Strong start to 2024 across all business segments.

A conference call for investors and analysts will be held at 10:00 GMT on Tuesday, 5 March 2024.

Participant dial-in numbers:

United Kingdom (Local): 020 3936 2999

All other locations: +44 20 3936 2999
Participant access code: 466558

Aki Hussain, Group Chief Executive Officer, Hiscox Ltd, commented:

“Our business has delivered excellent results, with record profits of $625.9 million underpinned by a 36% improvement in the underwriting result and a record investment income. The Group combined ratio below 90% and ROE of 21.8%^[3] have led to very strong capital generation, which we are deploying for further growth in all parts of the business in addition to a special return to shareholders of $150 million.”

^[1]Alternative performance measure definitions used by the Group are included within the consolidated financial statements.

^[2]Estimated for 2023.

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^[3]Excludes impact of Bermuda DTA.